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Not to mention the market is bad at capturing externalities. Tax incentives are one way to offset externalities that the market doesn't price in. If tax incenti
by WorldMaker 1y ago
Not to mention the market is bad at capturing externalities. Tax incentives are one way to offset externalities that the market doesn't price in. If tax incentive carrots are the "wrong way" to do it because they favor some companies more than others, then carbon/emissions taxes sticks are the "right way" to do it that provide a level "playing field" based on usage/consumption. (Arguably the most correct answer is "both" to get the "free-est market" with the most "information" about what society values priced into market supply and demand. Because "free" implies liquidity to follow the most "information" in the OG Adam Smith et al definitions, not free from incentives and disincentives.)